States Minimum Wage: Everything You Need to Know

States minimum wage is the amount that each state within the U.S. provides its employees. In 2017, a total of 19 states implemented higher minimum wage rates.6 min read

States Minimum Wage: Everything You Need to Know

States minimum wage are the wages set forth by each state that each employer must abide by when paying its employees. However, employers should be mindful that there are in fact federal minimum wages that each state must abide by when paying employees. More specifically, the federal minimum wage is $7.25 an hour. Therefore, each and every state within the country must ensure that employers pay their employees at least $7.25 an hour. However, states always have the ability to pay employees more, as many states do. If, however, a state offers less than the federal minimum wage, then those qualified businesses in those respective states must abide by the federal law as opposed to the state law, and pay their employees the federal minimum wage as opposed to the lower state minimum wage. In order for employees to qualify for federal minimum wage, the company must make at least $500,000/year in sales or revenue. However, it also applies to smaller businesses that conduct business across state lines (interstate commerce) or those companies operating in the transportation industry. It also applies to maintenance employees, security guards, government employees, schools, hospitals, and the like.

Depending on the cost of living, some states offer a higher minimum age to ensure that people can afford the cost of living within that particular state. Below is a specific table of state minimum wages by state. Each and every year, the state can increase its minimum wage. However, some states have a five or ten-year plan in which to raise the minimum wage every three years or so until the minimum wage hits a specific threshold.

Minimum Wages: States

Alabama has no minimum wage; therefore, the federal minimum wage of $7.25/hour applies within the state.

Alaska has a minimum wage of $9.75/hour.

Arizona has a minimum wage of $10/hour. This number is expected to increase every year based on the cost of living.

Arkansas has a minimum wage of $8.50 for employers with four or more employees.

California has a minimum wage of $10.50/hour.

Colorado has a minimum wage of $9.30/hour. This number will increase based on the cost of living, which is determined every year.

Connecticut has a minimum wage of $10.10/hour. Notably, Connecticut chooses the minimum wage by multiplying the federal minimum wage by 0.5 percent. Therefore, this state’s minimum wage will always be 0.5 percent higher than the federal minimum wage.

Delaware has a minimum wage of $8.25/hour. The state will increase this number every time the federal minimum wage increases. Therefore, if the federal minimum wage is increased to $8.25/hour, it is likely that the State of Delaware will increase the minimum wage to $9.25/hour.

D.C. has a minimum wage of $11.50/hour. If the federal minimum wage ever exceeds this number, then D.C. will increase the minimum age by $1 to ensure that it is more than the federal minimum wage.

Florida has a minimum wage of $8.10/hour. As with other states, Florida will increase this number based on the cost of living formula.

Georgia has a minimum wage of $5.15/hour. However, if the federal minimum wage applies to the employer, then the employer will be required to pay the employees the federal minimum wage of $7.25/hour.

Hawaii has a minimum wage of $9.25/hour. Note that employees who are guaranteed monthly pay of $2,000/month are exempt from this requirement.

Idaho pays $7.25/hour for minimum wage.

Illinois pays $8.25/hour for minimum wage, applicable only to those businesses who hire four or more employees. Note that the employees must not be family members. Therefore, if a business in Illinois has five employees, two of which are family members, then the minimum wage requirement will not apply, and the employer can pay its employees the federal minimum wage of $7.25/hour.

Indiana has a minimum wage of $7.25/hour.

Iowa pays a minimum wage of $7.25/hour. This number will increase if the federal minimum wages increases, as most other states will be required to increase the minimum wage if it falls below the federal minimum wage.

Kansas pays a minimum wage of $7.25/hour.

Kentucky also pays a minimum wage of $7.25/hour.

Louisiana doesn’t have a minimum wage law, but rather utilizes the federal minimum wage.

Main’s minimum wage is $9/hour. However, the state will increase this number by $1 if the federal minimum wage hits the $9/hour threshold.

Maryland pays a minimum wage of $8.75/hour. The state will increase this number if the federal minimum wage increases.

Massachusetts has a minimum wage of $11/hour. It will increase by 10 cents if the federal minimum wage equals the current state wage of $11/hr.

Michigan has a minimum wage of $8.90/hour. However, employers must hire two or more employees in order to meet this requirement. If not, then the employer need only pay the employee the federal minimum wage.

Minnesota has two different minimum wages depending on the profits of the business. With companies making over $625,000/year in annual receipts, the minimum wage is $9.50/hour. For those companies earning less than that, the minimum wage is only $7.75/hour.

Mississippi has no minimum wage, instead following the federal minimum wage laws.

Missouri pays a minimum wage of $7.70/hour. This number will automatically increase depending on the cost of living.

Montana pays a minimum wage of $8.15/hour if the company makes $110,000/year or more in annual receipts. If the company makes less than that, then the minimum wage is $4/hour. Remember that the federal minimum wage laws are still followed.

Nebraska pays a minimum wage of $9/hour for businesses hiring four or more employees.

Nevada’s minimum wage is $7.25/hour for employees who receive employer-sponsored health insurance. The minimum wage increases to $8.25/hour if the employer does not provide such insurance.

New Hampshire follows the federal minimum wage laws.

New Jersey provides a minimum wage of $8.44/hour.

New Mexico offers a minimum wage of $7.50/hour.

New York’s minimum wage is $9.70/hour. This number will increase if the federal minimum wages reaches this number. New York City, however, ha a minimum wage of $10.50/hour for companies with no more than 10 employees and $11/hour for businesses with 11 or more employees.

North Carolina offers $7.25/hour for minimum wage employees.

North Dakota also pays $7.25/hour for minimum wage.

Ohio pays a minimum wage of $8.15/hour for employers with gross annual receipts of $283,000 or more/annually. For those earning less, the minimum wage is $7.25/hour.

Oklahoma offers $7.25/hour for minimum wage.

Oregon has a minimum wage of $9.75/hour. This number may increase depending on inflation and the cost of living.

Pennsylvania offers a minimum wage of $7.25/hour.

Rhode Island pays a minimum wage of $9.60/hour.

South Carolina has no minimum wage, instead following the federal minimum wage laws.

South Dakota provides a minimum wage of $8.65/hour.

Tennessee has no established minimum wage laws. It follows the federal minimum wage laws.

Texas offers a minimum wage of $7.25/hour, and uses this number solely based on the federal minimum wage.

Utah pays a minimum wage of $7.25/hour, while also basing this number solely on the federal minimum wage.

Vermont pays a minimum wage of $10/hour for employers who hire two or more employees. This number may increase on an annual basis. Should the federal minimum wage be increased to $10/hour at some point in time, Vermont will automatically increase its minimum wage to be more than the federal minimum wage at all times.

Virginia offers a minimum wage of $7.25/hour for those with four or more employees.

Washington has a minimum wage of $11/hour, which can increase depending on inflation and the cost of living.

West Virginia offers a minimum wage of $8.75/hour for businesses with six or more employees at one single office.

Wisconsin has a minimum wage of $7.25/hour.

Wyoming’s minimum wage is $5.15/hour. Of course, the state will follow the mandatory federal minimum wage for qualified employers/employees.

Remember that, while a lot of states share the same federal minimum wage, those states may increase the minimum wage as noted based on inflation and the cost of living. Some states, however, will solely base its minimum wage on the federal minimum wage, and not increase this number until it is increased federally.

Moreover, some states, like Vermont, will always ensure that the state minimum wages exceed the federal minimum wage as much as it possibly can. Other states, however, have lower minimum wages, including Wyoming and Georgia. However, if certain Wyoming and Georgia businesses qualify, then those business must abide by the federal minimum wage laws and pay their employees $7.25/hour.

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